HomeMy WebLinkAboutResolution - 2002-R0500 - Resolution Nominating Tyco Fire Products For Tax Relief - 11/14/2002 (2)Resolution No. 2002-RO500
November 14, 2002
Item No. 44
RESOLUTION
WHEREAS, Texas Economic Development ("Agency") designated the Lubbock
International Airport Enterprise Zone (the "Zone") on January 29, 1998; and
WHEREAS, Agency will consider Tyco Fire Products, LP as an enterprise project
pursuant to a nomination and an application made by the City of Lubbock, Texas (the "City");
and
WHEREAS, the City desires to pursue the creation of the proper economic and social
environment in order to induce the investment of private resources in productive business
enterprises located in the Zone and to provide employment to residents of the Zone and to other
economically disadvantaged individuals; and
WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act,
Texas Government Code (the "Act"), Tyco Fire Products, LP has applied to the City for
designation as an enterprise zone project; and
WHEREAS, the City finds that Tyco Fire Products, LP meets the criteria for
designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the
following grounds:
Tyco Fire Products, LP is a "qualified business" under Section 2303.402 of the Act
since it will be engaged in the active conduct of a trade or business in the Zone and
at least twenty-five percent (25.0%) of the business' new employees will be
residents of a Zone within the City's jurisdiction or economically disadvantaged
individuals;
2. Tyco Fire Products, LP is located in the Zone, or has made substantial commitment
to locate in the Zone, which has an unemployment rate of not less than one and one-
half (1 ''/z) times the state unemployment rate;
3. There has been and will continue to be a high level of cooperation between public,
private, and neighborhood entities within the Zone; and
4. The designation of Tyco Fire Products, LP as an enterprise project will contribute
significantly to the achievement of the plans of the City for development and
revitalization of the Zone.
WHEREAS, the City finds that Tyco Fire Products, LP meets the criteria for tax relief
on other incentives adopted by the City and nominates Tyco Fire Products, LP on the grounds
aooP - 205d
that it will be located wholly within the Zone, will create a higher level of employment,
economic activity and stability; and
WHEREAS, the City finds that it is in the best interests of the City to nominate Tyco
Fire Products, LP as an enterprise project pursuant to the Act; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
That the findings of the City and its actions approving this resolution taken at the
council meeting are hereby approved and adopted.
BE IT FURTHER RESOLVED that Tyco Fire Products, LP is a "qualified business", as
defined in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise
project, as set forth in Section 2303, Subchapter F of the Act.
BE IT FURTHER RESOLVED that the enterprise project shall take effect on the date
of designation of the enterprise project by the agency and terminate five (5) years after that date
of designation.
PASSED BY THE CITY COUNCIL of the City of Lubbock this 14th day of
November 2002.
ATTEST:
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Rebecca Garza, City Secretary
APPROVED AS TO CONTENT:
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ichard Burdine, Assistant City Manager
APPROVED AS TO FORM:
D ald G. Vandiver, First Assistant City Attorney
Ddres/TycoNomRes
Resolution No. 2002-R0500
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Fire & Building
Products
October 28, 2002
Texas Economic Development
Texas Enterprise Zone Program
Post Office Box 12728
Austin, Texas 78711
Joseph S. Friedman Tyco Fire & Building Products
VP Finance 451 North Cannon Avenue
Lansdale, PA 19446
Tele: 215-362-0700
Fax: 215-362-8727
e-mail: joe.friedman@tycofp.com
Tyco Fire Products, LP is a wholly owned subsidiary of Tyco International, headquartered in Exeter,
New Hampshire. Tyco Fire Products is a manufacturer of fire protection devices such as sprinkler
heads, valves, fittings, and plastic piping products. The company's products are used in commercial,
residential and industrial applications. Tyco Fire Products operates manufacturing facilities in Lubbock,
Texas; Lansdale, Pennsylvania; Anniston and Huntsville, Alabama along with selling/distribution
facilities located in Lubbock, Texas, Dallas, Texas, and fifteen (15) other locations throughout the
United States.
The company's featured products, sprinkler heads, are currently manufactured in Lubbock, Texas and
Lansdale, Pennsylvania. In an effort to boost efficiencies and lower costs, the company undertook a
plant consolidation study during 2001. Based upon several factors including cost and availability of
labor, logistics, and our long-standing relationship with the City of Lubbock, it was decided to move all
of our Pennsylvania production to Lubbock, Texas.
The consolidation of production facilities requires the company to construct a new manufacturing plant.
A site was subsequently selected in one of the city of Lubbock's "Enterprise Zones" with the property
located adjacent to the Lubbock International Airport. When completed, the facility will be a 230,000
square foot "state of the art" manufacturing site representing the largest sprinkler head manufacturing
facility in the world. Construction was started in June 2002, with a completion date scheduled for
January 2003.
The total projected cost of this project is approximately $19,400,000 with the building, building
improvements, and miscellaneous equipment costing $13,400,000 and associated move/consolidation
costs totaling $6,000,000. Additionally, the company has tentative plans to commit approximately
$9,000,000 over the next three years in the way of new capital equipment. The Company will finance
the project by both internal means and grants extended by the City of Lubbock.
The Lubbock facility currently employs 369 employees. We are projecting that the consolidation project
will create 225 additional full time jobs. Furthermore, it is projected that an additional 100 employees
will be added during the five-year designation period.
Tyco Fire Products hereby certifies that the facility is located entirely within the Lubbock International
Airport Enterprise Zone. Tyco Fire Products certifies that it will maintain separate books and records of
the business activity conducted in the zone or other information as required by local and state
government units.
Tyco Fire Products is delighted with the prospects of participating in an Enterprise Zone Project and will
work hard to fulfill our obligations as proprietors of this project. We look forward to working with the City
of Lubbock and the State of Texas.
Sincere
Joseph S. Friedman
Vice President of Finance
JSF/kds
Resolution No. 2002-RO500
TEXAS ENTERPRISE PROJECT APPLICATION
2. Enterprise Project Certification Complete this form in its entirety and provide original signatures.
-- DO NOT RECREATE THIS DOCUMENT --
The nominated Enterprise Project hereby certifies that it:
1. is located entirely in, or is committed to locate entirely in the Lubbock International Airport
Enterprise Zone (the Zone); and
2. will maintain separate payroll and tax records of the business activity conducted in the zone, or
other information as required by local and state government units; and
3. commits to participate in local efforts to achieve development and revitalization of the Zone; and
4. understands that to be a "qualified business" eligible for enterprise project designation, twenty-
five percent (25%) of the new or additional employees hired must be residents of an enterprise
zone within the governing body's jurisdiction, or economically disadvantaged persons; and
5. commits that 25 percent of its new or additional employees will be residents of an enterprise zone
within the governing body's jurisdiction or economically disadvantaged persons; and
6. understands that the project must maintain the level of employment and the jobs for which a
refund has been received for at least three years from the date of refund of state sales taxes, or it
may become liable for recapture of refunded taxes by the Comptroller; and
7. agrees to annually certify to the parties named herein that we are, and will remain in compliance
with the above criteria, and that, if during any time period that compliance is not met, we will be
ineligible to claim any benefits to which we may be entitled to as a qualified business in the
enterprise zone; and
8. understands that the state sales and use tax refund is subject to approval by the Comptroller of
Public Accounts and the requirements of the Tax Code and applicable Administrative Rules —
specifically chapter 151.429 of the Tax Code and Rule 3.329. Construction contracts should be
"separated" (i.e. a contract in which the agreed contract price is divided into a separately stated
agreed contract price for incorporated materials and a separately stated agreed contract price for
skill and labor) and not "lump -sum" in order to claim a refund of sales tax.
This agreement and certification is effective from the date of designation through the date of
expiration as an enterprise project.
To the best information and belief, the information contained in this Enterprise Project Application is
true and correct and the local business liaison and the primary business repr e� av� have read the
Texas Enterprise Zone Act and the Enterprise Zone Progr Rules,,afid are familiar with the
provisions contained therein as evidenced by the signatures inco ated herein.
Signed: �.�� Z y��.l � Signed:
(Local Business Liaison) (Pn ary e5s Representative)
Printed Name: Leonard Schiavone
Title: VP/General Manager
Date :
Printed Name: Joseph S. Friedman
Title: VP of Finance
Date:
Texas Economic Development; Rev. 12/ 13/01 Form EPF-01; Page 11
TEXAS ENTERPRISE PROJECT APPLICATION
Certification Page
(Submit this page as applicable for each participating jurisdiction)
6. Governing Body Liaison Governing Body Representative
(person attending to the day-to-day (person authorized to execute documents
management of the zone and maintains on behalf of the applicant governing
contact with the Agency) body(ies))
Name Cheryl Brock Marc McDougal
Title Business Research Specialist Mayor
Represents City of Lubbock City of Lubbock
Street Address 1301 Broadway, Suite 200 1625 13th Street
City, State, Zip Lubbock, TX 79401 Lubbock, TX 79401
Mailing Address PO Box 2000 PO Box 2000
City, State, Zip Lubbock, TX 79457 Lubbock, TX 79457
Phone Number (806) 775-2019 (806) 775-2010
Fax Number (806) 749-4501 (806) 775-3335
E-Mail Address cbrock(a mail.ci.lubbock.tx.us mmcdougal(i )mail.ci.lubbock.tx.us
TDD Number
Certification:
To the best information and belief, the information contained in this Enterprise Project
Application is true and correct and the authorized representative and governing body liaison
have read the Texas Enterprise Zone Act and the Enterprise Zone Program Rules and are
familiar with the provisions contained therein as evidenced by the signatures incorporated
herein.
Signed: A�kccji
Governing ody Liaison
Printed: Cher -al Brock
Date: 1 (4 0
representative
Printed:
Date: November 14, 2002
Texas F,cononuc Development; Rev. 12 13 01 Form F,YF-01; Pale 5